Lean analytics for startups - Leweb2010
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Lean analytics for startups - Leweb2010

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20-minute speed-run presentation on what metrics and web analytics information startups need to collect. Focuses on companies with a lean methodology, and the kinds of data that will actually help ...

20-minute speed-run presentation on what metrics and web analytics information startups need to collect. Focuses on companies with a lean methodology, and the kinds of data that will actually help them achieve product/market fit before the money runs out.

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Lean analytics for startups - Leweb2010 Presentation Transcript

  • 1. Lean analytics for startupsWednesday, December 8, 2010
  • 2. @acroll (if you have questions)Wednesday, December 8, 2010
  • 3. Wednesday, December 8, 2010
  • 4. Wednesday, December 8, 2010
  • 5. Lean Not leanWednesday, December 8, 2010
  • 6. Ries, Mclure, and Blank are often misquoted.Wednesday, December 8, 2010
  • 7. They never said “fail faster.”Wednesday, December 8, 2010
  • 8. Instead: “Learn and adapt.”Wednesday, December 8, 2010
  • 9. Waterfall, agile, and lean Three approaches for three situations.Wednesday, December 8, 2010
  • 10. Waterfall approach You know the problem and the solution.Wednesday, December 8, 2010
  • 11. Known ways to Known set of satisfy them requirements Spec Build Test LaunchWednesday, December 8, 2010
  • 12. Agile methodologies Know the problem, find the solutionWednesday, December 8, 2010
  • 13. Unclear how Unknown set Known set of to satisfy them of requirements requirements Problem statement Build Test Viable? Launch Sprints AdjustWednesday, December 8, 2010
  • 14. Most startups Don’t even know what problem they solve.Wednesday, December 8, 2010
  • 15. Possible viable offering IVOT You are P Trial startup here Possible Possible Possible viable Trial startup problem Trial startup viable offering space offering Trial startup Possible viable offeringWednesday, December 8, 2010
  • 16. All startups are lean at first. Which has some interesting consequences.Wednesday, December 8, 2010
  • 17. Knowing Getting what’s not features right working, matters less. quickly, matters more.Wednesday, December 8, 2010
  • 18. “We should” “What if” matters less. matters more.Wednesday, December 8, 2010
  • 19. Your Parallel roadmap experiments matters less. matter more.Wednesday, December 8, 2010
  • 20. Real-world User groups adoption & and surveys usage matter less. analysis matters more.Wednesday, December 8, 2010
  • 21. Business Business plans matter models matter less. more.Wednesday, December 8, 2010
  • 22. http://www.flickr.com/photos/tinfoilraccoon/197640807/Wednesday, December 8, 2010
  • 23. Revenue ( Lemonade ) x Units sold + tips Cost ( Lemon + cups + sugar ) x Units made ( Markers + cardboard ) x Signs made ( Staffing ) x Hours worked Profit!Wednesday, December 8, 2010
  • 24. Wednesday, December 8, 2010
  • 25. (maybe not that fun a game) http://www.flickr.com/photos/ethanhein/3207831470/#/Wednesday, December 8, 2010
  • 26. Clouds and analytics It’s never been a better time to start a company.Wednesday, December 8, 2010
  • 27. Clouds make Analytics experimenting make easy, avoid experimenting upfront smart & fast. dilution.Wednesday, December 8, 2010
  • 28. I love to talk about clouds (but not today) http://www.flickr.com/photos/ecastro/3053916892/Wednesday, December 8, 2010
  • 29. I’m going to focus on the other part What to watch on your website, if you’re a startup.Wednesday, December 8, 2010
  • 30. So what could we watch?Wednesday, December 8, 2010
  • 31. “Hard” data Analytics Usability Performability (what did they (how did they (could they do do on the interact with what they site?) it?) wanted to?) Complete Web Monitoring Community VoC Competition (what were (what were (what are they they saying?) their up to?) motivations?) “Soft” dataWednesday, December 8, 2010
  • 32. Analytics is the measurement of movement towards your business goals. http://www.flickr.com/photos/itsgreg/446061432/Wednesday, December 8, 2010
  • 33. ATTENTION ENGAGEMENT CONVERSION NEW VISITORS SEARCHES GROWTH CONVERSION PAGES TIME RATE TWEETS NUMBER OF VISITS PER ON x MENTIONS VISIT SITE GOAL ADS SEEN LOSS VALUE BOUNCE RATEWednesday, December 8, 2010
  • 34. Visits Shopping cart Payment options ConversionsWednesday, December 8, 2010
  • 35. KPIs Bounce rate Conversion Visits rate Shopping cart Payment options ConversionsWednesday, December 8, 2010
  • 36. http://www.flickr.com/photos/mrmoorey/160654236Wednesday, December 8, 2010
  • 37. http://www.flickr.com/photos/duncan/1252272164/Wednesday, December 8, 2010
  • 38. http://www.flickr.com/photos/intherough/3573333256/Wednesday, December 8, 2010
  • 39. http://www.flickr.com/photos/jetheriot/648950773/Wednesday, December 8, 2010
  • 40. Wednesday, December 8, 2010
  • 41. Wednesday, December 8, 2010
  • 42. Wednesday, December 8, 2010
  • 43. Wednesday, December 8, 2010
  • 44. Wednesday, December 8, 2010
  • 45. Wednesday, December 8, 2010
  • 46. Wednesday, December 8, 2010
  • 47. Wednesday, December 8, 2010
  • 48. Wednesday, December 8, 2010
  • 49. Wednesday, December 8, 2010
  • 50. Impact of page load time on average daily searches per user 0% -0.15% -0.30% -0.45% -0.60% 50ms pre-header 100ms pre-header 200ms post-header 200ms post-ad 400ms post-headerWednesday, December 8, 2010
  • 51. Wednesday, December 8, 2010
  • 52. Impact of additional delay on business metrics 0% -1.25% -2.50% -3.75% -5.00% 50 200 500 1000 2000 Queries/visitor Query refinement Revenue/visitor Any clicks SatisfactionWednesday, December 8, 2010
  • 53. Shopzilla’s makeoverWednesday, December 8, 2010
  • 54. 5-12%Wednesday, December 8, 2010
  • 55. Wednesday, December 8, 2010
  • 56. Traffic levels 9,000 Total number of visits 6,750 4,500 8,505 2,250 4,740 0 Optimized Unoptimized Visitor experienceWednesday, December 8, 2010
  • 57. Bounce rate 20 15 Visits that bounced 10 13.38% 14.35% 5 0 Optimized Unoptimized Visitor experienceWednesday, December 8, 2010
  • 58. Average time on site 31 Time on site (minutes) 23 16 30.17 23.83 8 0 Optimized Unoptimized Visitor experienceWednesday, December 8, 2010
  • 59. Pages per visit 16 Average pages seen 12 8 15.64 11.04 4 0 Optimized Unoptimized Visitor experienceWednesday, December 8, 2010
  • 60. Conversion rate 20 and order value Difference due to optimization 15 10 16.07 5 5.51 0 Conversion rate Order valueWednesday, December 8, 2010
  • 61. Community management Hugging Bunnies Retweets Friends!Wednesday, December 8, 2010
  • 62. Unpaid search Community Email Banner ad mentions campaign ? • Google PageRank • Open rate • Cost of ads • Sessions-to-clicks • Opt-out rate (CPM) ratio • Clickthrough rate Visits Shopping cart Payment options ConversionsWednesday, December 8, 2010
  • 63. But there’s a danger: vanity metrics.Wednesday, December 8, 2010
  • 64. Wednesday, December 8, 2010
  • 65. So what should you watch? The lean analytics shortlist.Wednesday, December 8, 2010
  • 66. If you remember only one thing... In a startup, the purpose of analytics is to iterate to a product/market fit before the money runs out.Wednesday, December 8, 2010
  • 67. Viral coefficient Message reach Amplification Infrastructure health Performability Customer research Market sentiment Community sentiment User engagement Time since last visit Core goals Business model Extended funnel abandonment Movement towards goals Cost per engaged visitor Sustainability Peak to average ratio Minimum sustainable burnWednesday, December 8, 2010
  • 68. Viral coefficient On average, for each message they hear, how many people does someone tell?Wednesday, December 8, 2010 1
  • 69. ------------------------------------------------------ Get your free private email at http://www.hotmail.com ------------------------------------------------------Wednesday, December 8, 2010
  • 70. !Wednesday, December 8, 2010
  • 71. v ≠ 1, pt  = δp0 (1 – vt+1) / (1 – v) + p0  http://robert.zubek.net/blog/2008/01/30/viral-coefficient-calculation/Wednesday, December 8, 2010
  • 72. How well are messages being amplified?Wednesday, December 8, 2010 2
  • 73. Downstream reach (aggregate followers) 50% 75% 100% 50% =4 2 3 1 =6 Amplification chance (how relevant the content 25% 50% 50% is + what the recipient thinks of the sender) .5 2 1 = 3.5 14.5Wednesday, December 8, 2010
  • 74. Seed (starting community) Repurposing Reach (spread to other (impressions) communities) Visits Shopping cart Amplification (virality andPayment options message spread) ConversionsWednesday, December 8, 2010
  • 75. Viral message spread Reach (impressions) Emphasis on Visits getting viral ratio above 1 Shopping cart (Retweeting, Fan, EmailPayment options forward, Reddit upvote, other Conversions loops)Wednesday, December 8, 2010
  • 76. Megablogger proponents Seed (starting Emphasis on community) convincing highly- Reach followed, highly (impressions) acted-upon seed Visits group to spread the word. Shopping cartPayment options ConversionsWednesday, December 8, 2010
  • 77. A call to action Reach (impressions) Visits Shopping cart Emphasis on maximizingPayment options impression-to- click ratio within Conversions the communityWednesday, December 8, 2010
  • 78. Goal attainment: funnel Seed ratio: 20 35,000:1 Followers 700,000s 2 Repurposing 150 Amplification: Visitors: 2,000 RT 2.9% 1,642 0.23% 7 x $100 Revenues: Conversions: 1.95% 32 10 x $20 Average: $39.54 Median: $20 15 x $7 Total: $1,005Wednesday, December 8, 2010
  • 79. How performable are we? Health of the infrastructure (uptime, latency)Wednesday, December 8, 2010 3
  • 80. 5,000 $10,000 Revenue (total sales) Unique page views Conversions >4s or error 2-4s 0 $0 <2s 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16Wednesday, December 8, 2010
  • 81. What do visitors think of us? Both on the site (VoC) and in the world (community monitoring)Wednesday, December 8, 2010 4&5
  • 82. Wednesday, December 8, 2010
  • 83. Wednesday, December 8, 2010
  • 84. How engaged are users? Time since last visit, as a histogram, not an average, compared to baselines.Wednesday, December 8, 2010 6
  • 85. Days since last visit 1200 25000Number of users January February 1000 20000 800 15000 600 10000 400 5000 200 0 0 1 2 3 4 5 6 7 8 9 Disengaged Days since last engagement (>10 days)Wednesday, December 8, 2010
  • 86. Core goals driving the business Pick the 3-4 tasks you’ve set for users. Always know what these are and why they correlate to business growth.Wednesday, December 8, 2010 7
  • 87. (Remember the model?) Revenue ( Lemonade ) x Units sold + tips Cost ( Lemon + cups + sugar ) x Units made ( Markers + cardboard ) x Signs made ( Staffing ) x Hours worked Profit!Wednesday, December 8, 2010
  • 88. Extended funnel abandonment Not just on the site: Email open rateWednesday, December 8, 2010 8
  • 89. Wednesday, December 8, 2010
  • 90. In the last build, what moved us towards & away from goals? Requires knowing the goals and the key features addedWednesday, December 8, 2010 9
  • 91. Cost per visitor Operations costs per site visitorWednesday, December 8, 2010 10
  • 92. (this had better be greater than the revenues and conversion rate.)Wednesday, December 8, 2010
  • 93. Peak-to-average ratio How much busier are you at busy times? What premium do you pay for that surplus? Can you decommission well?Wednesday, December 8, 2010 11
  • 94. http://community.microsoftadvertising.comWednesday, December 8, 2010
  • 95. Wednesday, December 8, 2010
  • 96. Minimum sustainable burnWednesday, December 8, 2010 12
  • 97. http://www.flickr.com/photos/dougww/833127501/Wednesday, December 8, 2010
  • 98. Viral coefficient Message reach Amplification Infrastructure health Performability Market sentiment Customer research Community sentiment 12 User engagement Time since last visit things Core goals to Business model watch Extended funnel abandonment Movement towards goals Cost per engaged visitor Sustainability Peak to average ratio Minimum sustainable burnWednesday, December 8, 2010
  • 99. Thanks! alistair@bitcurrent.com @acroll www.yearonelabs.com www.rpmmtl.com www.watchingwebsites.com www.bitcurrent.com www.human20.comWednesday, December 8, 2010